Answer:
the future value of the cash flow in year 4 is $5,632.73
Explanation:
The computation of the future value of the cash flow in year 4 is as follows:
= $1,075 × (1.08^3) + $1,210 × (1.08^2) + $1,340 × (1.08^1) + $1,420 ×(1.08^0)
= $1,354.19 + $1,411.34 + $1,447.20 + $1,420
= $5,632.73
Hence, the future value of the cash flow in year 4 is $5,632.73
The same is to be considered and relevant
<span>Heavy speculation is a bad idea in any market since it has a tendency to inflate prices to unrealistic levels. That is basically what many investors prior to the Great Depression did when they thought the market would keep going higher and higher. They borrowed money, sold their houses, etc.. to buy into the stock market thanks to that kind of speculation without even considering the underlying reasons for why the market is there in the first place.</span>
Answer:
First option will be recommended.
Explanation:
To determine which option to be taken, we calculate the net present value each option generates. The option generating higher NPV should be recommended.
- Net present value of first option = Lump sum receipt = $150,000.
- Net present value of second option will be found by discounting cash flows at investing rate 12% and calculated as followed:
+ Present value of 20 equal annual payment of $14,000 + Present value of $60,000 paid in 20 years = (14,000/12%) x [ 1 - 1.12^(-20)] + 60,000/1.12^20 = $110,792.
As net present value of the first option is higher than the second option, first option will be recommended.
Anne is conducting market research by doing a competitive analysis.
Hope this helps! :)
Answer:
Great Lakes should recognize on the income statement for the year ending December Year 1 $4,000
Explanation:
The income statement only recognize the amount of money that was generated during the period of the income statement.
If the company invoiced by month, it only recognize the total amount for the last four months of the year.
